Petty Cash Policy Template

How to Create a Petty Cash Policy?

Creating a Petty Cash Policy is a straightforward process, however, companies should not forget to include some important details in it. The document should contain sections such as:

1. Introduction . The policy should start with a title. It will help state the nature of the document and avoid possible misunderstandings that may occur. The next page should designate the table of contents since the policy usually contains a large amount of information concerning the subject.
2. Policy Statement . This part of the document should express the main purpose of the policy and provide employees with information, such as what petty cash should be spent on, who is responsible for it, the reasons why the petty cash account can be closed, what to do in case of theft, and other important aspects.
3. Responsibilities . Here the policy should state all of the responsibilities for the person who maintains the petty cash, and their title. For example, one of the responsibilities may be that the petty cash custodian must count the petty cash monthly (or twice a month). This section can also list the responsibilities of those employees who have requested the petty cash.
4. Procedures . It can include the descriptions of different procedures, such as replenishing the petty cash account, requesting petty cash, closing the petty cash account, Petty Cash Reconciliation, etc. Each description should contain a list of steps that need to be taken in each case, the definition of each step with details, and the documents or instructions that can be used.
5. Forms and Instructions . The document can be followed with appendixes. For example, if the company has developed a form for requesting the petty cash, a form for replenishing the petty cash, a Petty Cash Voucher, or any other documents connected with the subject that can be useful, they should attach a sample of it here.
6. Conclusion . At the end of the document, the company should provide the contact information of employees who can be responsible in the case that any questionable situation occurs. It should also state the name of the company as the policy owner, and the names of those who have approved the policy.

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